"60% of the global ESCO market is in Asia" – Asia-Pacific ESCO Industry Alliance
ADB HEADQUARTERS, MANDALUYONG CITY, 5 June 2018 — Philippine Energy Efficiency Alliance (PE2) president Alexander Ablaza, in his capacity as founding convenor of the newly formed Asia-Pacific ESCO Industry Alliance declared that an estimated sixty percent of the USD 26.8 billion global energy service company (ESCO) market is situated in Asia. This statement was made during a Meeting of Asia-Pacific ESCO Associations convened here earlier today by PE2 and the Sustainable Energy Association of Singapore (SEAS) as a pre-forum activity of the Asia Clean Energy Forum 2018 (ACEF 2018).
Ablaza declared during the meeting, "The center of gravity of the global energy service company (ESCO) market has shifted to Asia -- one of the compelling reasons why the ESCO associations of China, Japan, the Philippines, Singapore and Taiwan now agree to establish the Asia-Pacific ESCO Industry Alliance. The ESCO business model is a clearly demonstrated modality to mobilize energy efficiency capital in developing and developed markets, and should be further mainstreamed in the more nascent ESCO markets in the Asia-Pacific region."
Ablaza’s statement was based on the International Energy Agency (IEA) estimates of the size of the global ESCO market in 2016, as captured in IEA’s 2017 Energy Efficiency Market Report. Of the USD 26.8 billion global ESCO revenues in 2016, USD 15.1 billion was earned in China, another USD 300 million in India, and at least one-third of the USD 1.9 billion was assumed earned in other Asian markets which include Japan, Korea, Hong Kong, Singapore and some southeast Asian economies.
During the meeting, PE2, SEAS and the ESCO associations of China, Japan and Taiwan unanimously agreed to issue a Joint Statement on the Formation of the Asia-Pacific ESCO Industry Alliance, which shall serve as a regional platform for energy service company (ESCO) markets to facilitate knowledge exchange, capacity development, business matching, and if deemed feasible, development funding and capital flows between mature, developing and nascent ESCO markets in the Asia-Pacific region.
ADB’s energy sector group chief, Dr. Yongping Zhai, congratulated the body for establishing the regional platform and looked forward to discuss ways of how the newly formed Alliance can help ADB introduce innovation in clean energy technologies, business models or financial products to middle-income countries in the region.
The founding associations of the regional Alliance are the: ESCO Committee of China Energy Conservation Association (EMCA), Japan Association of Energy Service Companies (JAESCO), Philippine Energy Efficiency Alliance (PE2), Sustainable Energy Association of Singapore (SEAS), and the Taiwan Energy Service Association (TESA).
Ablaza and EMCA vice director Lily Zhao Ming were elected by the body to co-chair the newly formed regional Alliance.
